'Many companies don't classify their data properly and may not understand where their data is or who has access to it': experts explain risks of corporate espionage amid Deel, Rippling lawsuit
A dramatic legal dispute between HR tech giants Deel and Rippling has highlighted a problem that could hit closer to home than many Canadian employers might realize.
The lawsuit, filed in California last week, has Rippling alleging that an employee, acting on behalf of Deel, accessed sensitive internal documents over several months.
The claim alleges the employee was caught by a “honeypot” scheme posed by Rippling’s security team, and further details how he dramatically fled the scene when faced with a court-ordered seizure of his phone.
The case drew a lot of attention — and also serves as a reminder that corporate spying is a real threat even north of the border.
“In terms of employees taking confidential information or collecting information to use to compete, it certainly has happened in Canada, it certainly does happen,” says Michael Comartin, partner at Ogletree Deakins in Toronto.
“I think one of the things that's likely is that it's more technologically focused, but you have case law going back more than a decade of employees setting up competitor companies based on taking client relationships.”
One of the most effective tools for preventing corporate espionage is the employment agreement itself, Comartin says. Yet, not all...
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